EDMONTON, ALBERTA--(Marketwired - Dec. 2, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX:BRY) a leading North American wholesale distributor and blender of oilfield chemicals is pleased to announce that it has acquired 100% of the issued and outstanding shares ("Shares") of Solution Blend Service Ltd. ("Solution Blend"), an Alberta based liquid blending facility for production and stimulation oilfield chemicals. The acquisition of Solution Blend will also include the purchase of certain land and building assets related to their operations. The total purchase price for the Shares of Solution Blend is CAD$5.0 million which includes a CAD$500,000 two year vendor takeback. Closing of the transaction was effective December 1, 2014.
Solution Blend, located in Calgary, AB, is a leading specialty blending company for the stimulation and production chemical segment of the oilfield chemical industry. Solution Blend generated approximately CAD$5.3 million in revenue with an operating gross margin of approximately 35% for the unaudited twelve month period ended July 31, 2014. The company's strategic advantage is ensuring customer success by providing high quality specialty oilfield blended products, operating in a safe and environmentally controlled facility, while maintaining compliance regulations, proficient warehouse management and delivery. Solution Blend's business has built a strong market position with many long term customers and Bri-Chem entered into employment agreements with key members of management which is expected to provide for a seamless integration.
"The acquisition of Solution Blend is our most strategic fluid integration move to date," commented Don Caron, Chief Executive Office of Bri-Chem. "Solution Blend positions our company to move seamlessly into the rapidly growing liquid stimulation and production oilfield blending chemical segment. In addition, we will immediately explore expanding their operations into key regions within our USA network of warehouses."
Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for the distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products, cementing, acidizing and stimulation additives from 34 strategically located warehouses throughout Canada and the United States. Bri-Chem has been operating in Canada since 1985 and as a result of the increasing market demand for oilfield chemicals, we expanded into the United States in 2011 and have successfully obtained significant market penetration. Additional information about Bri-Chem is available at www.sedar.com or at our website at www.brichem.com.
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